Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Position in the U.S. And Denmark

38 Pages Posted: 6 May 2003

See all articles by Nabanita Datta Gupta

Nabanita Datta Gupta

Department of Economics and Business, Aarhus University; IZA Institute of Labor Economics

Ronald L. Oaxaca

University of Arizona - Department of Economics; IZA Institute of Labor Economics

Nina Smith

Aarhus University - Department of Economics; IZA Institute of Labor Economics

Date Written: April 2003

Abstract

We compare how U.S. and Danish gender wage gaps have developed between 1983 and 1995 using U.S. PSID and Danish Longitudinal Sample data. Using a new decomposition method, we show that changes in returns to observable skills and ranking effects outweigh women's gains due to qualifications and account for a rising gap in Denmark, while these effects cannot counter the large decline in the wage gap in the U.S. in this period. Increased wage dispersion has a minimal effect on the gap in both countries. Women at the highest decile in Denmark face the biggest increase in the gap, while in the U.S., the decline is largest at the top and at the middle of the distribution.

Keywords: Gender Wage Gaps, Decomposition Method

JEL Classification: J7

Suggested Citation

Datta Gupta, Nabanita and Oaxaca, Ronald L. and Smith, Nina, Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Position in the U.S. And Denmark (April 2003). IZA Discussion Paper No. 756. Available at SSRN: https://ssrn.com/abstract=403861

Nabanita Datta Gupta (Contact Author)

Department of Economics and Business, Aarhus University ( email )

Fuglesangs Allé 4
8210 Aarhus V
Denmark
+45 87165207 (Phone)

HOME PAGE: http://pure.au.dk/portal/da/ndg@econ.au.dk

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ronald L. Oaxaca

University of Arizona - Department of Economics ( email )

McClelland Hall
Tucson, AZ 85721-0108
United States
520-621-4135 (Phone)
520-621-8450 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Nina Smith

Aarhus University - Department of Economics ( email )

Universitetsparken
DK-8000 Aarhus C
Denmark
+45 8948 6413 (Phone)
+45 8615 5175 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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